€200m sale of hotel chain marks the end of an era
Located at some of the country’s most famous locations, the luxury hotels over the years welcomed royalty and the movers and shakers of the day.
Britain’s Queen Victoria took the train to Killarney in 1861, while the Galway hotel hosted flying heroes Alcock and Brown, who were first to cross the Atlantic non-stop in 1919.
According to market sources, the group’s eight hotels could sell for up to €200m, or double their €100m book value.
Huge interest is reported in the hotel chain — with the sale figure boosted by the redevelopment potential of some of the properties.
More than 100 enquiries have been received by advisers for the Dublin Airport Authority (DAA), which owns the hotel group.
The DAA is selling off the hotel chain because of its continuing losses — expected to reach €8m this year. The group’s accumulated debt stands at €40m.
The hotels are being offered for sale by tender or as a going concern, with offers to be submitted no later than June 23.
Six of the hotels have a four-star rating. The 1,054-bedroom group includes key airport hotels at Dublin, Cork and Shannon airports and corporate and resort hotels in Kerry, Galway and Rosslare. Shannon and Rosslare are three-star hotels.
To allow for maximum flexibility, the owners are willing to sell the hotels individually or as a group.
The Corrib hotel in Galway has close on seven acres of residential land near the city. The group’s other Galway hotel, on the city’s Eyre Square, is valued at €40m.
At the Parknasilla, Killarney, flagship hotel, two existing planning permissions allow for a complete renovation and the development of other facilities.
